Italy Tax Agency Issues Circular on Individual Income Tax Deduction Measures Under 2025 Budget Law

The Italian Revenue Agency May 29 issued Circular No. 6/E, clarifying individual income tax deductions under Law No. 207/2024, as introduced by the 2025 budget law. The circular clarifies: 1) the progressive basic deductions of up to 14,000 euros (US$15,990) for individuals with income between 75,000 euros and 100,000 euros (US$113,507), and up to 8,000 euros (US$9,137) for individuals with income exceeding 100,000 euros based on the number of fiscally dependent children, from Jan. 1; 2) that expenses incurred for specified individuals, including spouses not legally separated and adopted children, may be eligible for deduction from Jan. 1; 3) the ...